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8 Cards in this Set
- Front
- Back
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What is Marketing and its basic function? |
Kotler defines marketing as the process by which companies attempt to create value for custimers and build relations in order to capture value from them in return. Its basic function is to attract new customers and retain existing ones - which ultimately leads to profit making. |
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What is the Marketing process? |
Kotler has devised a 5 step process which shows what marketing involves and consists of - it shows its more than "just about selling". |
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The 1st Step? |
The first step of this process is 'Understanding the needs and wants of the customers'.
- At this stage businesses use market research, using both primary and secondary data to learn and understand the market they operate in.
- Helps them answer questions they need answers for and gain customer insights.
- This is important in order to create and provide a good, service or experience where the customer's perceieved benefits outweigh their perceieved costs - thus creating value.
- Perceived benefits might be more than just using the product, having and possessing the product mught give an individual personal benefits - Give example |
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The 2nd Step? |
The second step of this process is that businesses must 'design a customer-driven marketing strategy'.
- This involves marketing management attempting to segment the market.
- They must choose a target market that they intend on serving - in order to pistion them selves in the market.
- Customer demand is dervived from 2 sources - New and existing customers.
- The key to reataining existing customers is providing value and satisfaction superior to what your competitors provide.
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The 3rd Step? |
The third step of this process is to 'construct a value focussed marketing programme'.
- This involves analyising and determining the business' marketing mix. (The marketing mix are the tools that the business uses to achieve its marketing objectives in a target market). These tools fall under the 4 Ps.
- Product
- Price
- Place
- Promotion
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The 4th Step? |
The fourth step of this process involves 'building profitable relationships with the customers'. - Businesses must build relationships in order to retain customers. - It is important for businesses to do this as retaining is far cheaper than attracting new customers. - Businesses retain customers through - interacting and communicating, loyalty schemes. |
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The 5th Step? |
The fifth and final step of the process involves 'capturing value from the customers'. - Businesses will finally capture value for customers via both current and future sales. - The key outcomes of customer value are - Customer loyalty, retention, share of the market, share of the customer and customer equity. - The value captured by the business is depenedent upon the value that they create for the customer. - Superior value leads to highly satisfied customers who buy more. |
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Conclusion. |
Marketing inlvoves processes that lead to and aim to sell products to customers. However, it must be understood that seeling isnt their only or main concern. The primary function is to attract and maintain customers through creating value in many ways. There are numerous of processes in between looking for customers and seeling the product to them. |
